"My focus now is to prove that a bad diagnosis does not have to mean a bad outcome.

"It's just another battle of a different type and I never give up."

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Ms Ikin said she had received quality care from north Queensland health services and she recognised many others faced similar challenges in their lives.

"I have a beautiful family, some crazy animals and a great community," she said.

"I'll be signing off and over to them for at least six to 12 months, but I will never give up on north Queensland, or you, or the wonderful future we can have here.

"See you soon."

Ms Ikin was considered a strong chance in Kennedy, which she came close to winning at the 2013 federal election.

Deputy Prime Minister Warren Truss said the diagnosis was not just a challenge for Ms Ikin, but also a loss for the LNP.

"I wish her a speedy recovery and my thoughts and prayers are with her and her family at this time, particularly her husband Trevor, daughters Tabitha, Gabrielle and Kiralee, and her mother Julie," he said.

"Naturally, Noeline's health must now be her priority, and we understand her decision to stand down as the LNP candidate for Kennedy."

In their past encounter, Mr Katter scraped through on preferences after losing the on primary vote 34,344 to 24,691, with a swing of 16.15 per cent against him.

Mr Truss said the LNP and Ms Ikin had high hopes of toppling Mr Katter at this year's election.

"I have no doubt Noeline would have won the seat of Kennedy," he said.

"She is a true fighter, and I know her personal strength and determination will help her meet the challenges which lie ahead."

LNP president Gary Spence said the party would shortly re-open nominations in Kennedy.

"Noeline is one of the hardest working people to represent our party and the thoughts of all members are with her and her family at this time," he said.

"She is an extremely strong and positive woman who has shown a deep commitment and passion for her region, its people and the party over many years and I sincerely thank her for her outstanding efforts.

"Undaunted by the challenge she faced at 2013 election, Noeline travelled thousands of kilometres throughout the vast electorate of Kennedy and nearly won the seat.

"It is that spirit which will stand Noeline in good stead for the challenge she now faces."

A spokeswoman for Mr Katter said he would not comment on other candidates, but Labor's candidate for Kennedy Norman Jacobsen wished his former opponent well.

"I have known Noelene for many years and wish Noelene and her family all the best in her fight to beat this," he said.